Wells & Young's lose Red Stripe and Corona

Lagers Red Stripe and Corona will be leaving the Wells and Young's portfolio and returning to their brand owners next year.

In a statement the Bedford-based company confirmed its contracts covering both brands expire next year and will not be renewed.

The company brews Red Stripe and has distributed it for 30 years. It has distributed Corona Extra for 15 years.

Red Stripe is set to return to Diageo next summer but the future of the Grupo Modelo-owned Corona Extra is as yet unconfirmed.

Paul Wells, chairman of Wells & Young's Brewing Company, said: "Both brands are in great shape and have had outstanding sales in the last few years, as have our ale brands. We always knew both contracts could expire in 2011, and we have planned accordingly.

"I know that everyone in the company is really proud of having grown these brands to the iconic positions they hold today, and I think that is a fitting tribute to the teamwork and expertise of our people here at Wells and Young's.

"So from here, Young's, Bombardier and Courage and our other partner brands, Kirin Ichiban, Estrella Damm and Erdinger, will get even more focus."

Diageo also released a statement confirming it was discussing the future of Red Stripe with Wells & Young's.

The drinks giant said: "Diageo owns a majority share in Desnoes and Geddes [the owner of the Red Stripe brand] and Wells & Young's has managed the brand in the UK for 30 years on our behalf.

"The contract between Desnoes and Geddes and Wells & Young's ends in August 2011 and it has been decided not to extend the current contract beyond that date, at which point Diageo GB will be taking responsibility for the brand.

"In the last 10 years, Wells & Young's has grown Red Stripe to become one of the most sought after premium lager brands in the UK. "